Srinagar, Feb. 3 -- In addition to affecting existing mutual funds, the new NAV rule also has implications for NFO mutual funds, creating a more consistent and predictable framework for both seasoned and new investors. This article breaks down the details of SEBI's new rule, its objectives, and how it impacts investors.

What is NAV in mutual fund?

NAV(Net Asset Value) in mutual funds represents the per-unit value of a mutual fund scheme. It is calculated by dividing the total value of all assets in the fund (after deducting liabilities) by the number of outstanding units. NAV fluctuates daily based on changes in the value of the fund's underlying securities and is an essential indicator of a mutual fund's performance.

Investors purchas...